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Dow Jones Continues To Decline on Wednesday

Author:
Eray Bekir
Market News

Stocks fell on Wednesday as bond yields declined again, triggering concerns about the economic outlook. Increasing trade tensions in the China-U.S. trade fight also weighed on markets.

The Dow Jones Industrial Average dropped 221.36 points to 25,126.41 while the S&P 500 slid 0.7% to 2,783.02. The Nasdaq Composite declined by 0.8% 7,547.31. The Dow briefly fell more than 400 points as the 10-year Treasury note yield hit its low of the day.Dow drops more than 200 points as rates slide.

The 10-year Treasury note yield fell to its lowest level since September 2017 before rebounding to about 2.26%. A portion of the yield curve further inverted as 3-month Treasury bills last yielded 2.36%, well above the 10-year rate. A yield curve inversion is seen by traders as a potential sign that a recession is in the horizon.

Bank shares fell along with yields. Bank of America and J.P. Morgan Chase both slid more than 0.2%. Citigroup dipped 0.1%. Shares of the three banks had dropped more than 1% earlier in the day.

The S&P 500 broke below 2,800, a key technical level watched by traders. The broad index also traded around its lowest level since late March.

 

 

International Financial Markets Department

Euro-Finance Ltd.

forex@eurofinance.bg

www.eurofinance.bg 

*This material should not be considered as a recommendation for buying/selling securities.